00 CS FOR SENATE BILL NO. 4002(FIN)
01 "An Act amending the bulk fuel bridge loan fund; amending the power cost equalization
02 program, repealing the exclusion from eligibility for power cost equalization for certain
03 power projects that take their power from hydroelectric facilities, and amending the
04 definition of 'eligible electric utility' as it applies to the power cost equalization program
05 and the grant program for small power projects for utility improvements; establishing
06 the Alaska resource rebate program and relating to that program; and providing for an
07 effective date."
08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
09 * Section 1. AS 29.60.660(c) is amended to read:
10 (c) Loans made from the bulk fuel bridge loan fund to one borrower in a fiscal
12 (1) may not exceed $750,000 [$500,000]; and
13 (2) shall be repaid within one year after the date of the award.
01 * Sec. 2. AS 42.45.110(c) is repealed and reenacted to read:
02 (c) The amount of power costs for which equalization is paid to an electric
03 utility is the difference between
04 (1) 10 cents a kilowatt-hour; and
05 (2) the lowest of the following:
06 (A) $1.15 a kilowatt-hour;
07 (B) power costs as determined by the commission under (a) of
08 this section; or
09 (C) the average rate for each eligible kilowatt-hour sold.
10 * Sec. 3. AS 42.45.110(c), as repealed and reenacted by sec. 2 of this Act, is repealed and
11 reenacted to read:
12 (c) The amount of power cost equalization provided for each kilowatt-hour
13 under (b) of this section may not exceed 95 percent of the power costs, or the average
14 rate for each eligible kilowatt-hour sold, whichever is less, as determined by the
15 commission. However,
16 (1) during the state fiscal year that began July 1, 1999, the power costs
17 for which power cost equalization were paid to an electric utility were limited to
18 minimum power costs of more than 12 cents a kilowatt-hour and less than 52.5 cents a
19 kilowatt-hour; and
20 (2) during each following state fiscal year, the commission shall adjust
21 the power costs for which power cost equalization may be paid to an electric utility
22 based on the weighted average retail residential rate in Anchorage, Fairbanks, and
23 Juneau; however, the commission may not adjust the power costs under this paragraph
24 to reduce the amount below the lower limit set out in (1) of this subsection.
25 * Sec. 4. AS 42.45.110 is amended by adding new subsections to read:
26 (j) The power cost equalization for each kilowatt-hour calculated under (c) of
27 this section may be determined for a utility without historical kilowatt-hour sales data
28 by using kilowatt-hours generated.
29 (k) Notwithstanding (c) of this section, an electric utility shall receive not less
30 than five cents a kilowatt-hour in power cost equalization under (b)(2) of this section.
31 * Sec. 5. AS 42.45.150(2) is amended to read:
01 (2) "eligible electric utility" or "electric utility" means a public,
02 cooperative, or other corporation, company, individual, or association of individuals,
03 and includes the lessees, trustees, or receivers appointed by a court, that
04 [(A)] owns, operates, manages, or controls a plant or system for
05 the furnishing, by generation, transmission, or distribution, of electric service
06 to the public for compensation [;
07 (B) DURING CALENDAR YEAR 1983, HAD A
08 RESIDENTIAL CONSUMPTION LEVEL OF POWER ELIGIBLE FOR
09 POWER COST EQUALIZATION UNDER FORMER AS 44.83 OF LESS
10 THAN 7,500 MEGAWATT HOURS OR HAD A RESIDENTIAL
11 CONSUMPTION LEVEL OF POWER ELIGIBLE FOR POWER COST
12 EQUALIZATION UNDER FORMER AS 44.83 OF LESS THAN 15,000
13 MEGAWATT HOURS IF THE UTILITY SERVED TWO OR MORE
14 MUNICIPALITIES OR UNINCORPORATED COMMUNITIES; AND
15 (C) DURING CALENDAR YEAR 1984, USED DIESEL
16 FIRED GENERATORS TO PRODUCE MORE THAN 75 PERCENT OF
17 THE ELECTRICAL CONSUMPTION OF THE UTILITY; AN ELECTRIC
18 UTILITY THAT IS A SUBSIDIARY OF ANOTHER ELECTRIC UTILITY
19 IS AN "ELIGIBLE ELECTRIC UTILITY" IF THE OPERATIONS OF THE
20 SUBSIDIARY, CONSIDERED SEPARATELY, MEET THE ELIGIBILITY
21 REQUIREMENTS OF AS 42.45.100 - 42.45.150; IF AN ELECTRIC
22 UTILITY DID NOT RECEIVE POWER COST ASSISTANCE IN 1983 BUT
23 IS OTHERWISE ELIGIBLE FOR POWER COST EQUALIZATION
24 UNDER AS 42.45.100 - 42.45.150, THE UTILITY IS AN "ELIGIBLE
25 ELECTRIC UTILITY"];
26 * Sec. 6. AS 42.45.150(2), as amended by sec. 5 of this Act, is amended to read:
27 (2) "eligible electric utility" or "electric utility" means a public,
28 cooperative, or other corporation, company, individual, or association of individuals,
29 and includes the lessees, trustees, or receivers appointed by a court, that
30 (A) owns, operates, manages, or controls a plant or system for
31 the furnishing, by generation, transmission, or distribution, of electric service
01 to the public for compensation;
02 (B) during calendar year 1983, had a residential
03 consumption level of power eligible for power cost equalization under
04 former AS 44.83 of less than 7,500 megawatt-hours or had a residential
05 consumption level of power eligible for power cost equalization under
06 former AS 44.83 of less than 15,000 megawatt-hours if the utility served
07 two or more municipalities or unincorporated communities; and
08 (C) during calendar year 1984, used diesel-fired generators
09 to produce more than 75 percent of the electrical consumption of the
10 utility; an electric utility that is a subsidiary of another electric utility is an
11 "eligible electric utility" if the operations of the subsidiary, considered
12 separately, meet the eligibility requirements of AS 42.45.100 - 42.45.150; if
13 an electric utility did not receive power cost assistance in 1983 but is
14 otherwise eligible for power cost equalization under AS 42.45.100 -
15 42.45.150, the utility is an "eligible electric utility";
16 * Sec. 7. AS 42.45.250(e) is amended to read:
17 (e) Loans made from the bulk fuel revolving loan fund to one borrower in any
18 fiscal year
19 (1) may not exceed $750,000 [$500,000], or, if the borrower is a
20 cooperative corporation organized under AS 10.15 or an electric cooperative
21 organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more
22 than one community, may not exceed the lesser of $750,000 [$500,000] multiplied by
23 the number of communities on whose behalf the bulk fuel is to be purchased, or
25 (2) shall be repaid in one year or less; and
26 (3) may not exceed 90 percent of the wholesale price of the fuel
28 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to
30 ALASKA RESOURCE REBATE PROGRAM ESTABLISHED. Subject to
31 appropriations and availability of funds for the program, the Alaska resource rebate program
01 is established to provide residents of the state with resource rebates under sec. 9 of this Act
02 and to provide persons with emergency energy relief under sec. 10 of this Act.
03 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to
05 RESOURCE REBATES. (a) To provide residents of the state with a resource rebate,
06 the amount of the 2008 permanent fund dividend shall be increased. After calculating the
07 amount of the 2008 dividend under AS 43.23.025, the commissioner of revenue shall add
08 $500 to determine the total amount of that dividend.
09 (b) A veteran or the spouse or dependent of a living or deceased veteran who did not
10 apply for the 2008 permanent fund dividend and is eligible for veterans' benefits under 38
11 U.S.C. 1315, 1513, 1521, 1541, and 1542 may apply to the Department of Revenue for a $500
12 Alaska resource rebate payment for 2008. The individual shall apply on a form provided by
13 the department not later than October 1, 2008, and shall demonstrate that the individual would
14 have been eligible to receive a 2008 permanent fund dividend under AS 43.23, except that the
15 individual did not apply for that dividend.
16 (c) A veteran or the spouse or dependent of a living or deceased veteran who is
17 eligible for veterans' benefits under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 who is
18 denied or receives reduced payments under those provisions or reduced health care benefits
19 solely because the $500 increase in the dividend under (a) of this section or the $500 payment
20 under (b) of this section received by the individual is counted as income is eligible for cash
21 assistance under AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the
22 limit in AS 47.25.130, the individual is entitled to receive the same amount as the individual
23 would have received under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 and as a health care
24 benefit as a result of being eligible under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542, had
25 the $500 increase or payment not been received under (a) or (b) of this section.
26 (d) Subject to appropriation, the amount necessary for resource rebates to increase
27 2008 permanent fund dividends under (a) of this section shall be transferred from the general
28 fund to the dividend fund (AS 43.23.045).
29 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to
31 EMERGENCY ENERGY RELIEF. (a) The Alaska Energy Authority shall provide
01 persons with emergency energy relief payments to offset the cost of fuel used for residences.
02 (b) Subject to (e) of this section, a person may receive an emergency energy relief
03 payment based on the amount that exceeds $3.00 a gallon that the person pays for each gallon
04 of fuel delivered September 1, 2008, through March 31, 2009, and September 1, 2009,
05 through March 31, 2010, for a building in the state that is primarily used for one or more
06 residences. The amount of the emergency energy relief payment must include an amount to
07 reimburse the sales tax that the individual paid for the fuel for which the emergency energy
08 relief payment is made, except that the amount of reimbursement included in the payment
09 must be based on the sales tax rate in effect on the effective date of this section. Payments
10 may not be made for more than 600 gallons of fuel used for a single family residence during
11 September 1, 2008, through March 31, 2009, and 600 gallons of fuel used for a single family
12 residence during September 1, 2009, through March 31, 2010. Payments may not be made for
13 more than 300 gallons of fuel for each unit in a multifamily building used for that building
14 during September 1, 2008, through March 31, 2009, and 300 gallons of fuel for each unit in a
15 multifamily building used for that building during September 1, 2009, through March 31,
16 2010. A payment may not be made for fuel used for a building owned by a governmental
17 entity. A person may apply for and receive more than one emergency energy relief payment.
18 If the authority estimates that appropriations to the authority are insufficient to fully fund
19 emergency energy relief, the authority may eliminate or reduce the payments on an equitable
21 (c) A landlord or lessor that receives a payment under this section shall pass on a
22 benefit to the landlord's or lessor's tenant by lowering the amount of rent by the amount
23 attributable to the tenant's unit. A landlord or lessor may retain up to 10 percent of the
24 payment otherwise required to be passed on to the tenant to cover administrative costs. Failure
25 to comply with the requirement of this subsection is a violation of AS 45.50.471. The
26 authority may audit the books and records of a landlord or lessor for compliance with this
28 (d) The authority
29 (1) shall administer this section, but may contract for the performance of some
30 or all of those administrative duties; and
31 (2) may adopt regulations under AS 44.62 to implement this section.
01 (e) A person who is an individual is eligible to receive a payment under this section
02 only if the individual is a state resident under AS 01.10.055. In addition, to receive a payment
03 under this section, a person shall
04 (1) apply, before July 1, 2010, for the payment on a form provided by the
06 (2) provide, with each application, proof of purchase of fuel from a qualified
07 distributor on the list prepared under (f) of this section;
08 (3) verify that the fuel is used for a building that is primarily used for one or
09 more residences, identify the building, and identify the number of residential units in the
11 (4) verify that the building is not owned by a government entity;
12 (5) supply other information that may be required by the authority.
13 (f) A business or other entity that supplies fuel for use in residential buildings may
14 apply in a manner required by the authority for inclusion on the qualified distributor list
15 prepared and kept updated by the authority under this subsection. As a condition of becoming
16 a qualified distributor, the business or other entity must submit a signed statement to the
17 authority, under penalty of unsworn falsification, on a form or in a format prescribed by the
18 authority, that the business or other entity will not increase its price for fuel solely in response
19 to this section, and that the business's or other entity's pricing policy will remain consistent
20 with prior practices and be based on the same criteria, as though this section had not been
21 enacted. The authority may audit a qualified distributor's books and records to confirm that
22 the statement made under this subsection is complete and accurate. If the distributor
23 reasonably believes a delivery of fuel is made to a building primarily used for one or more
24 residences, during September 1, 2008, through March 31, 2009, or during September 1, 2009,
25 through March 31, 2010, the distributor shall agree to identify the delivery as residential in a
26 manner prescribed by the authority. The distributor shall agree to submit to the authority its
27 billing statements for purchases of fuel for residences and related customer and sales
28 information that may be requested by the authority from time to time. The distributor shall
29 provide other information required by the authority.
30 (g) A person aggrieved by a decision of the authority regarding the person's eligibility
31 to receive an emergency energy relief payment, other than a determination based on
01 insufficient funding for emergency energy relief, may request a hearing before the office of
02 administrative hearings established under AS 44.64.
03 (h) A person is liable to the state for the value of emergency energy relief improperly
04 paid under this section if the improper payment was based on inaccurate or false information
05 provided by the person. In a civil action brought by the state to recover from the person the
06 value of the emergency energy relief improperly paid, the state may recover from the person
07 the costs of investigation and prosecution of the civil action, including attorney fees as
08 determined under court rules.
09 (i) In determining the eligibility of an individual under a public assistance program
10 administered by the Department of Health and Social Services in which eligibility for
11 assistance is based on financial need, the Department of Health and Social Services may not
12 consider a payment under this section as income or resources received by the individual or by
13 a member of the individual's household unless required to do so by federal law. The
14 Department of Health and Social Services shall notify all recipients of public assistance of the
15 effects of receiving emergency energy relief.
16 (j) An individual who is denied medical assistance under 42 U.S.C. 1396 - 1396v
17 (Title XIX, Social Security Act) solely because of the receipt of a payment under this section
18 by the individual or by a member of the individual's household is eligible for state-funded
19 medical assistance under AS 47.25.120 - 47.25.300 (general relief assistance). The individual
20 is entitled to receive, for a period not to exceed four months, the same level of medical
21 assistance as the individual would have received under 42 U.S.C. 1396 - 1396v had the
22 emergency energy relief not been received.
23 (k) An individual who is denied assistance solely because a payment under this
24 section received by the individual or by a member of the individual's household is counted as
25 income or resources under federal law is eligible for cash assistance under AS 47.25.120 -
26 47.25.300 (general relief assistance). Notwithstanding the limit in AS 47.25.130, the
27 individual is entitled to receive, for a period not to exceed four months, the same amount as
28 the individual would have received under other public assistance programs had the emergency
29 energy relief not been received.
30 (l) A program that is established before the effective date of this section, that is
31 administered by the state or any of its instrumentalities or municipalities or by a Native
01 organization under AS 47.27.070, 47.27.200, or 47.27.300, and for which eligibility is based
02 on financial need may not consider a payment under this section as income or resources
03 unless required to do so by federal law.
04 (m) A veteran or the spouse or dependent of a living or deceased veteran who is
05 denied or receives reduced disability payments solely because a payment received under this
06 section by the individual is counted as income is eligible for cash assistance under
07 AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the limit in
08 AS 47.25.130, the veteran or the spouse or dependent of a living or deceased veteran is
09 entitled to receive the same amount as the individual would have received under 38 U.S.C.
10 1315, 1513, 1521, 1541, and 1542 had the emergency energy relief not been received.
11 (n) Notwithstanding any contrary provision of state law, a payment under this section
12 is exempt from levy, execution, garnishment, or any other remedy for debt collection until
13 after the payment has been received by the person. No other exemption applies to emergency
14 energy relief payments received under this section.
15 (o) A form provided by the authority under (e) of this section must include a warning
16 that the submission of incomplete or inaccurate information is punishable as unsworn
17 falsification in the second degree under AS 11.56.210.
18 (p) A person is guilty of a class A misdemeanor if the person
19 (1) uses fuel, payment for which has been partially reimbursed with a payment
20 under this section,
21 (A) for a purpose other than use in a building that is primarily used for
22 one or more residences; or
23 (B) for a building that is owned by a governmental entity; or
24 (2) resells fuel, payment for which has been partially reimbursed with a
25 payment under this section.
26 (q) In this section,
27 (1) "authority" means the Alaska Energy Authority created under
28 AS 44.83.020;
29 (2) "fuel" means heating oil or propane.
30 * Sec. 11. AS 42.45.110(k) is repealed June 30, 2010.
31 * Sec. 12. AS 42.45.115 is repealed.
01 * Sec. 13. Sections 10(a), (b), (d) - (f), (i) - (o), and (q) of this Act are repealed September 1,
03 * Sec. 14. Sections 3 and 6 of this Act take effect June 30, 2010.
04 * Sec. 15. Sections 2, 4, 5, 11, and 12 of this Act take effect October 1, 2008.
05 * Sec. 16. Sections 1 and 7 - 10 of this Act take effect immediately under AS 01.10.070(c).